Territorial Outlook

Surging demand for minerals key to long-term growth.

Updated: March 24, 2022

Workers in an open mine Workers in an open mine Workers in an open mine

After a two-year roller coaster, the territorial economies are trending upward, driven by a bright outlook for many minerals extracted in Canada’s North. The tourism sector will also enjoy a much-needed boost in the short term following the loosening of travel restrictions in Canada and around the globe. And over the next two decades, travel activity in all three territories is poised to grow, as investments in infrastructure and a growing Canadian population drive a greater number of visits to the North.

Despite our generally positive outlook, skills shortages will present major hurdles over the next 20 years. The reliance by local economies on workers from outside territorial borders means much of the income earned in the North is redistributed to other parts of the country. If this were not the case, our outlook would be significantly more favourable.

Key findings

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The outlook for Yukon is strong thanks to rising mineral production in the coming years. Following estimated economic growth of 7.5 per cent in 2021, the economy of Yukon will expand by 7.6 per cent in 2022.

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A new mining project will begin commercial production in the next few years, which, combined with rising production at another of Nunavut’s mines, will help support future economic growth.

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Amid lingering pandemic-driven disruptions, the economy of the Northwest Territories mounted a partial recovery in 2021. In 2022, the economy is forecast to grow by 5.7 per cent.

Territorial Outlooks to 2045

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